8/14/2019 RECOMMENDATIONS CONCERNING ESTIMATION AND REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES

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RECOMMENDATIONS CONCERNING ESTIMATION AND

REPORTING OF MINERAL RESOURCES AND MINERAL

RESERVES

FORWORD

This document summarizes recommendations made by the "SEC ReservesWorking Group / Resources and Reserves Committee" (the Working Group) of 

the Society for Mining, Metallurgy, and Exploration, Inc. (SME) concerning

specific issues related to the public reporting of mineral resources and mineral reserves.

These recommendations, including the proposed 2005 SME Guide, were submitted to the

Staff of the U.S. Securities and Exchange Commission (the SEC) on April 30, 2005 for its

consideration. It is the Working Group's opinion that accepting these recommendationswould result in significantly improved public reporting. However it is important to keep in

mind that these are only recommendations. The SEC rules and regulations and relatedinterpretations for mining companies engaged or to be engaged in mining operationscurrently differ from the recommendations made by the Working Group in its submission

to the SEC.

Questions or comments concerning the Working Group and its recommendations can be

addressed by mail or electronically to:

Electronically: 

J.M. Rendu, Chairman, Resources and ReservesCommittee

JMRendu@aol.com 

Dick Graff, CPA, Co-chairman, Resources and

Reserves Committee

Rgraff303@aol.com 

By mail: 

Jean-Michel (J.M.) Rendu

Chairman, Resources and ReservesCommitteeSociety for Mining, Metallurgy, and

Exploration, Inc.

8307 Shaffer ParkwayLittleton, Colorado 80127

U.S.A.

8/14/2019 RECOMMENDATIONS CONCERNING ESTIMATION AND REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES

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INDEX

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1. Introduction and Executive Summary1.1. Introduction 

1.2. Executive Summary 

2. Background

Background 

3. Formation of the "SEC Reserves Working Group"

Table 1: Composition of SEC Reserves Working Group 

4. Review Process

Table 2: Composition of Coal Review Group 

5. Relationship between Reserve Reporting and Financial Reporting

Relationship between Reserve Reporting and Financial Reporting 

6. Objectives and Governing Principles

6.1. Objectives 

6.2. Governing Principles 

6.3. Document Outline 

7. Issue A: Commodity Pricing Guidelines

7.1. Issue 

7.2. Current Requirements and Practices 7.3. Discussion 

7.4. Working Group Recommendations 

7.5. Additional Remarks Concerning Use of Standardized Prices 7.6. Text to be Included in the 2005 SME Guide 

7.7. Supplemental Information: Price Cycles 

8. Issue B: Publication of Mineral Resources8.1. Issue 

8.2. Current Requirements and Practices 

8.3. Discussion 

8.4. Working Group Recommendations 8.5. Justification of Recommendations 

8.6. Text to be Included in the 2005 SME Guide 

9. Issue C: Technical and Economic Study Requirements

9.1. Issue 9.2. Current Requirements and Practices 

9.3. Discussion 

8/14/2019 RECOMMENDATIONS CONCERNING ESTIMATION AND REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES

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  9.4. Working Group Recommendations 

9.5. Justification of Recommendations 

9.6. Text to be Included in the 2005 SME Guide 

10. Issue D: Permitting and Legal Requirements

10.1. Issue 10.2. Current Requirements and Practices 10.3. Discussion 

10.4. Working Group Recommendations 

10.5. Justification of Recommendations 

10.6. Text to be Included in the 2005 SME Guide 

11.1 Issue E: Competent Person

11.1. Issue 

11.2. Current Requirements and Practices 11.3. Discussion 

11.4. Working Group Recommendations 11.5. Text to be Included in the 2005 SME Guide 

12. Coal, Industrial Minerals, Diamonds and Other Gemstones

12.1. Introductory Remarks 12.2. Reporting of Coal Resources and Coal Reserves 12.3. Reporting of Mineral Resources and Mineral Reserves for Industrial Minerals 

12.4. Reporting of Mineral Resources and Mineral Reserves for Diamonds and Other

Gemstones 

APPENDIX 1: U.S. Securities and Exchange Commission, Division of Corporation

Finance, Industry Guide 7 

APPENDIX 2: The 1999 SME Guide: A Guide for Reporting Exploration Information,

Mineral Resources, and Mineral Reserves 

APPENDIX 3: The 2005 SME Guide for Reporting Exploration Results, Mineral

Resources, and Mineral Reserves